Public Utilities Commission Modernization Legislation Headed to Gov

PUC modernized to
maximize benefits for ratepayers in the clean energy transition

(May 3) – The House
approved a bill to renew the Public Utilities Commission (PUC) for the next
seven years, help address the threat of climate change, and hold utility
companies more accountable. The bill is sponsored by Speaker KC Becker and Rep.
Chris Hansen. The PUC provides regulatory oversight of public utilities in
Colorado.

“Passing this modernization will strengthen protections for consumers, prioritize safety, reduce emissions, and improve efficiency and reliability while exploring various forms of grid interconnection,” said Speaker KC Becker, D-Boulder. “The bill requires utilities to account for the social cost of carbon in their electricity resource planning and to do a review of workforce transition plans when the closure of coal plants is accelerated in order to ensure workers and communities are supported.”

The bill directs the
Commission to evaluate the cost of carbon pollution emissions when considering
projects in the future. Carbon pollution impacts Colorado’s air quality and
exacerbates the risks of climate change in the state and around the world.

“This legislation
modernizes the PUC and ensures it’s prepared for the challenges and
opportunities of the thriving clean energy economy. This bill is a significant
step forward for Colorado,” said Rep. Hansen, D-Denver. “The Commission plays a pivotal
environmental role and must be ready to serve all Coloradans as the market
moves toward cleaner, cheaper renewable energy sources.”

The PUC is responsible
for providing oversight of Colorado’s utilities and protecting Coloradans from
high utility costs. In seeking to address climate change, SB19-236 will direct
the PUC to consider the costs of pollution and a workforce transition plan
during the utility planning process. The bill also directs the PUC to implement
rules ensuring safe, reliable, and affordable services that satisfy customers’
changing expectations, and take advantage of technological advancements that
benefit customers.

The bill specifies a
minimum value for the cost of carbon pollution. Currently, nine other states
employ a cost of carbon as an element of utility regulation including Illinois,
Maine, Maryland, Minnesota, Washington, California, Nevada, New Jersey and New
York.

SB19-236 passed the House floor with a vote of 40-24 after Senate approved amendments added in the House. It now goes to the Governor for signature.